Gilts clearing system delayed
Wednesday 04 December 1996
As a result of the delay, a new City market in "stripped" gilts, where the interest and principal are traded separately, will be delayed until the start of the upgraded gilts clearing system.
However, a Budget tax concession linked directly to the new strips market will take effect on 7 June, despite the delay in starting the upgraded gilts settlement system.
The Treasury concession allows all interest payments on gilts to be made gross, without tax deducted at source. This payment of interest gross is essential for the new strips market to operate.
The Bank of England said it was intended to keep open the option of merging the settlement systems for gilts and shares in future, once they were fully up and running. The Bank set up Crest, though it handed it over to a large group of City shareholders. As a first step, the two settlement systems are to use the same networks, Syntegra and Swift.
Meanwhile, Crest and the Bank are sharing information about the improvements being introduced to the new share settlement system in the light of experience with commissioning.
Crest is the first fully computerised share settlement system, and is gradually taking over from the Stock Exchange's old Talisman settlement operation.
Teething problems caused an outcry among brokers. The Crest system was on the brink of a crisis last month as pressure grew to suspend its commissioning because of delays in operation.
But a Crest board meeting last week decided to stick to the previously planned date of next April for full commissioning.
- 1 A daily walk 'can add seven years to your life'
- 2 Rules on 5p plastic bags likely to lead to arguments at the check-out
- 3 Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
- 4 News agency criticised for describing Amal Clooney as 'actor's wife' in coverage of human rights trial
- 5 If men are so obsessed by their genitals, why do they clam up when confronted with the grisly realities of sex?
Rules on 5p plastic bags likely to lead to arguments at the check-out
The nine most warmongering countries in the world revealed
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
VMAs 2015: Kanye West runs for president, Nicki Minaj calls out Miley Cyrus and the list of winners in full
News agency criticised for describing Amal Clooney as 'actor's wife' in coverage of human rights trial
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...